Good afternoon, and welcome to the Randgold Resources fourth quarter earnings conference call. (Operator Instructions) I would now like to turn the conference over to Philippe Lietard. Please go ahead, sir.

Thank you, and good morning and good afternoon everyone in North America, Europe and Africa, and welcome to this presentation of Randgold Resources results. I'm sitting with Mark Bristow and his team to make a presentation in Cape Town, which coincides with the annual Indaba, which as usual is assembling the African mining industry and its partners. By now, you will have seen our results for the past quarter, and of the year 2007. And I'm sure you will have noted also, two important decisions taken by the Board last Thursday. First, to declare an annual dividend, and second, to proceed with the Tongon project in Cote d'Ivoire. Some two years ago, in one of its regular strategic review sessions, Randgold Resources management was imagining a few "what if?" economic scenarios to try and frame Randgold's own development strategy and investment choices. One of these scenarios was a situation in which a high gold price would be accompanied by rising productions costs, an oil price of around $100 per barrel, a weak dollar, the threat of global inflation and a shortage of gold, and of gold projects. They called this scenario, "the Perfect Storm". So, with "the Perfect Storm," now upon us, I don’t need to tell you that fortunately, the measures that Randgold Resources took in good time to prepare for it, and Mark can tell you more about it in a minute, have equipped the company singularly well to take full advantage of the opportunities and to manage the difficulties presented by this challenging environment. This is why we are able to report today that the company has posted another creditable performance for the past year, and even more importantly, that we are looking forward to, with great confidence, to the years ahead. I will stop here and thank you very much again for your interest in our company. And Mark will now take you through the results and give you the overview of the current developments, and the future prospects. Thank you.

Thanks Philippe. Again, good morning and good afternoon to everyone. I think if we start, just building on what Philippe said, and that is looking at our strategy, you'll recall that we have always consistently invested in explorations, with an eye on developing, or creating, our own value through the development of our own discovery. And I think this presentation for 2007, and specifically the quarter, highlights the significance of persevering with that commitment. And it's like any business, if you don’t invest in R&D, you really don’t create new opportunities. Without a doubt, that investment is now paying off. And in the markets that still seems to be teeming with promises, we offer production, real projects with profits to fund them and particularly people with proven capacity handle the downs as well as the ups of this turbulent industry, and more importantly to be able to manage these assets in a tough environment that's synonymous with operating in emerging markets. If we look to the first slide after the title slide, for those who are following the slide show, then I'm not planning to re-present the entire speech, or presentation I made at lunchtime. That is available as a webcast on our website. I intend to just go through the highlights. We'll start with the highlights, slide two, and just run through the year which, as I'm sure you all recall, started off slow, and ended strongly with a very good fourth quarter. This is reflected in net profits which are up 26% on the previous quarter and 34% on the same quarter in 2006. Net profit for the year decreased from $50 million to $45 million but would have also been up on 2006 had it not been for some exceptional items. We include a $3.5 million tax…

(Operator instructions) Our first question comes from David Haughton of BMO, please go ahead.

Well thank you very much and good afternoon to you. Just looking at the Morila transfer of operatorship, can you just talk us through that, what’s required there, are you going to keep existing staff, or do you plan to add people? And is there any likelihood of changes to the cost structure as reported by you?

I’m going to answer the last question first, the operatorship comes as an operating fee of 1% of our revenue, so that will impact our revenue line. We have a lot of the overheads in place already; we don’t believe that we’re going to putting on a whole lot more costs. We might take on one, or one and a half bodies, or allocate bodies within our organizations. On the mine, again we’ve worked through this with AngloGold Ashanti and they’ve assured us that there might be one or two potential people that they might be interested in and they will be offering them to us, but at this stage we don’t see anyone leaving the mine. We certainly are very happy to take all the people on, and we’ve counseled all of them, along with AngloGold Ashanti. I think what we plan to do is once we’re through with all the paperwork, and as we gave you a heads up, we’ll give you some more detail in the next week or so. We’ll then move in to start with some strategic thinking with the senior members of the team and then get into the mine and really complete a thorough due diligence. I think we all agree it’s a good idea because often someone who hasn’t been really submersed in the project has a different view of our things, and we hope that will come with some benefits. You know, it’s a tough call because it is a mine that’s in decline. At the same time we will continue to explore and our real commitment is to see this project through and close it as per our original feasibility study, our relationships are critical in that part of the world and we’ve got a long way to go in continued exploration in other developments.

So then, can you envisage upside beyond the current plan of mining stopping 2009 and mining stockpile through 2013?

No, right now we don’t have any, as we show even in our resources take it out of the underground even at these gold prices, but not withstanding that, we are still exploring. We’re going to have, again, another good look, there’s a lot of data floating around the mine, so again I think we’ll come with a fresh look. I think all the major partners are committed to continue to spend exploration while they are involved, and we will certainly do that.

On a different topic, thinking about 2008, would you be able to provide us with your expectation of capital expenditure and exploration spend for 2008?

2008, with the other capital, I’ll pass you onto Graham to give you the details.

Thank you.

At Morila the total capital will be about $4 million, to our share, less than $2 million. At Loulo you’re looking at total capital of about $47 million, about $41 million directed to the underground projects and the extension of the infrastructure associated with that, and you’ve got about $6 million of sustaining capital in there as well.

David, Tom and I will spend 267 at this stage, an estimate, pretty evenly over two years. We are, and that’s the reason the Board brought their approval forward, pushing to spend some of that earlier this year, as I’m being told that into this year, again, we’re not going to do it unless we’re happy about it, and that could be $6 million to $16 million. We have started spending with auditor Gentex. We got it in just before Eskom, sort of, scrambled the market, and we are doing long lead out and in definitions, and designs at the moment. So we’ll be ordering this equipment throughout this year, and some of it comes with deposits.

And your thoughts on exploration expenditure for the year?

Same as last year. I think that’s really where we’re coming from. It’s going to be a different mix. I think there are still some significant explorations spend in Ivory coast. We’re seeing allocating at this stage, 16% to 18% to Senegal with the Massawa project. But, I’m not sure you’re familiar with the way we run explorations. We have a core budget and then we have a total number, and then everyone has to compete for the drilling. Right now Massawa is the winner. It’s going to attract more of the drilling budget than less. At the same time, we’ve still got quite a bit of drilling to complete in Tongon. Some of that will be expensed and as we go down the road some of that will be capitalized. I think that the stuff going forward now will be capitalized as we got the decision from the Board.

With Massawa, is that a long strike from Sadiola? Sorry…

No. Do you know the MDL Project?

Yes, That’s what I meant. Sorry.

Okay, the MDL Project is in the (same) greenstone belt but there’s a main structure, trans-current shear structure, which runs down the whole length of the eastern side of the Gulf. And it’s associated with that the MDL Sabodala deposit is on an offshoot of that. It’s not on the main structure.

Is there anything else on that main structure, other than…?

Right now, David, we’ve got 2.8 kilometers defined and it’s open and Paul we've done some (inaudible).

As Mark said earlier, the last run holes in the North and South have got significant results. (inaudible) 24 meters at 8 grams, but we've stopped the soil (inaudible) and we’ve actually extended the soil anomaly to just over six kilometers. As well as systematically starting the diamond drilling program, we’re also testing that full six kilometers with further RAB drilling. But we’ve also got a number of other targets along that (inaudible) corridor including (Delau) and the (Bakan) corridor as well. So we’ve got a whole number of targets. Obviously Massawa is the highest priority at this stage.

Would you envision a (reasonable) statement during the course of 2008?

I think, for me, we would envision a good (heads up of the size) as far as (inaudible) continuity and some basic… We have very strict criteria in (inaudible) to talk about (real ounces). It depends how - if we can we’ll drill 10,000 meters before the rains. That should give us a lot to live with David. So, certainly this year we should get to something if it’s there. And that’s the big thing. But we're going to pull out the stops.

All right. Thank you. I’ll leave the questions there for now.

Thanks David

Thank you very much. Out next question comes from Victor Flores of the HSBC. Please go ahead.

Thank you. Good afternoon Mark. First, a couple of questions about Morila. It appears to me from the production profile, that you’ve put in the presentation, that Morila’s production is going down a bit more quickly that you had originally anticipated. Is that because the grades have been consistently lower than planned as you got toward the life of the mine?

Hi Vic. First of all congratulations on the arrival of your son. Hey, well done.

Thank you.

Secondly, Look we’re missing in (Sabodala) And thirdly, your observations are correct that they going down. Exactly what it is and with what - whether it's the ore body or whether we’re just not getting our management right. The one thing that worries us is that Morila mine management have always been bailed out by either the grade or the gold price. And we’ve been consistently warning that as you come to the end your flexibility goes away. So, we’re not that close to an operation. I mean we’re reasonably close. But we’re certainly not that close. That’s going to be the first job running this team. We’re going go and really work with the management there and try and get they’re mind around it. We’ve said we will do that. And we’d want to be comfortable with having a look at the whole life of the mine. That is the one thing we’re aware of, and if you can find anything, you've pretty much got what you've got at Morila.

Thanks Mark. And then the question as to the profit, if there is going to be one, with respect to AngloGold possibly disposing its stake. What pre-emptive rights do you have and is there an agreement in the joint venture as to the timing of a potential sale?

Yeah, it’s very specific. It’s actually available on the website. I’ll quickly run you through it. And AngloGold has indicated that they will follow that process. For us to, the first step is they have to formally furnish us with a first notice which is which is, we want to sell. We then have 20 days. And we have to undertake the two partners to negotiate and search for a solution on price and terms in good faith. If we get to the 20 days and we haven’t been able agree on a price, AngloGold Ashanti have to then furnish us with what they want for a price in US Dollars. We have 20 days to consider that. And then if we decline it, AngloGold Ashanti has 30 days to go into the market and find a buyer for that price in US Dollars cash or higher. It also, however, has to get guarantees from the purchaser that finds one which provides for it to have to buy our share at the same price, because we have a tag-along. We don’t have to sell it. But we can elect to tag. After 30 days, if that hasn’t happened, it starts all over again.

Okay. So this may or may not happen, depending on what they decide.

Exactly, and that’s, I think that’s been Mark’s consistent comment to me is that they are close to considering the sale of this. They’re not a fire sale company. We've explained to them that we’re not going to buy anything we can’t make a profit out of. So, we can’t see ourselves paying a premium on cash-flow. So, I think that one thing that we’re both committed to is treating this in a responsible way and dealing with the government in all steps and so far we’ve been okay with that.

Great. Thank you. Mark, if I could just ask one final follow-up and that goes to cost. You know that energy costs or fuel costs are still higher, or higher than they were a year ago and that’s going to have a bite on costs this year. Can you just spend a couple of minutes just talking about where you see cost pressures in general in that part of the world for yourself and for other operations.

Well Victor. There are three components in cost. Really, essentially, the Euro-Dollar exchange rate which drives, in our area, consumables in general. The higher fuel price, which directly translates into cost because we consume a lot of diesel by power generation. The one thing I might add is that at least we’ve got consistent supply of electricity, although it might be expensive. And then the third thing is grade. People always blame the first two. But the industry’s asset quality is deteriorating and it’s very easy to blame everything on these other two factors – cross factors. We, as you know, we’ve got a grade profile. The nice thing about the underground at Yalea is that it lifts that grade profile and it will ameliorate their increasing cost per ounce going forward. Really, on fuel costs, there’s still a lot we can do as far as improving our use of it. Efficiency, we've got a SWOT team working on that right now and we've got a long supply chain. Some of it goes missing, some of it gets redistributed out of the mines. There's a whole chain of things that you can improve on. Then it's just mindset. One of the things, as you know, in Randgold Resources is we hammer hard despite the gold price to keep the focus on costs. So, when we look at like our business plan, all our pits were planned at 550 gold this last year, for this year. We used 720 to design our business plans so we tightened up on, and keep the focus on the costs and revenue lines and then once we've settled that then we run (spot). The other big (inaudible) is he mindset of management. That you've got a high gold price and you've got more flexibility and more money to play with.

Great, thank you so much Mark.

Our final question comes from Steven Butler of Canaccord Adams. Please go ahead.

Good morning, Mark. From Toronto here, a question for you. What is roughly the euro denominated cost base for you in Mali? How much percentage of your costs are really linked to euro?

Steve, hi, it's Graham here. It depends on how you look at the cost of diesel. We actually pay for our diesel in CFA so nominally it's a Euro based expenditure but obviously ultimately everything is linked back to a dollar based underlying oil price. So but roughly speaking if you take the configuration of about 60% of our costs on euro, 40% dollar. And if you strip that out and you take oil price out of it, about 35% is euro based directly

Okay.

Steve, I think that’s a good question you ask, and I, one of the things, as you know, we really look at our business and try and analyze the cost, make decisions along these decisions. One of the things we do is that, we’ve seen a very extended period of weakening dollar, whether the dollar’s going to weaken to 160 or a little bit more, relatively, it’s not a long way to go. And we’re looking all the time at different ways to manage our costs in dollar terms. And for instance, we’ve place our next two big (end sets) for the Loulo underground expansion which are due in 2009 and 2010. We’ve actually decided to take them in dollars and fix the dollar price. And we’ll manage that. This is something we’ve managed. We managed the Euro when it was slipping on the basis that we took a percentage of our dollar earnings and converted it into euros as we sold gold. We don’t. We never play with instruments. We just manage a little bit on cash flow and that’s sort of moves out, the spikes in the exchange rates. And we’ll continue to do that. We’ll look at it carefully.

Ok. Thank you. The next question. Just two more, I think here. The Tongon project; will you present, the NTV table, or the graph there, with the NT Vs at different discount rates. Are we talking here about 100% of the project after taxes?

After taxes…

Yes. After taxes.

And we always, you know we are a company that does pay taxes. Yes, after taxes.

Ok. That’s fine.

After taxes, and everything.

Bear in mind that there is a five-yea corporate tax holiday factored in. But it’s according to the convention.

Ok. A five-year holiday?

Yes.

Then they’re actually how much?

35%.

35% OK. Thank you. Last question. Guys.

Sorry Steve. Ivory Cost is slightly different to Mali in 3% Royalty Note and 6% Royalty as well.

OK. Last question, I hope, would be, you referred to at the outset. A tax hit at Morila. Can you elaborate, was it $3.5 million or some form of tax that hit the cash costs at Morila. Is that right?

We have these tax audits that go back in history and it was for the period ending 2005.

Yeah, 2004 and 2005.

Steve. It relates to non corporate tax but rather VAT and withholding taxes. And that’s why in the income statement you’ll see it sitting on the other expenses rather than in the corporate tax line.

Ok. It wasn’t in you cash cost, or was it, at the mine?

I wouldn’t say so.

Yes. It’s included in the cash costs.

At Morila?

Yes.

Ok guys. I thank you very much.

Gentlemen. We have no further questions. Would you like to make some closing comments?

Again I’ll just end up by saying that if any of you guys want follow-up questions, you’re welcome to give us a call. You’ve got our contacts. If you don’t have them, just give Kathy a call or drop a note on the website. We’ll pick it up and we’ll react to it straight away. Thank you very much.

On behalf of Randgold Resources, that concludes conference. You may now disconnect your lines.